Australia's Amcor to buy US rival Bemis

Australian packaging company Amcor Ltd says it will acquire US rival Bemis Co in an all-stock deal valuing the US company at $US5.25 billion ($A7.1 billion).

Bemis shareholders would get 5.1 Amcor shares for each Bemis share, or $US57.75, per share, resulting in Amcor shareholders owning approximately 71 per cent and Bemis shareholders 29 per cent of the new entity.

The deal is at a 12 per cent premium to Bemis' last close at $US51.53.

Amcor said it would establish a primary listing on the New York Stock Exchange with an estimated market capitalisation of $US17 billion, while maintaining its Australian listing.

The Australian company had requested a trading halt earlier on Monday to make an announcement on an acquisition, fuelling expectations of a bid after the Wall Street Journal reported Amcor is in advanced talks to buy Bemis.

The packaging industry is under severe pressure due to rising costs, prompting firms to hike prices.